Benchmark’s Invoice Gurley on new health-care investments

Enterprise capitalist Invoice Gurley says he just lately made two health-care investments regardless that he says the sector is stuffed with perils.

“I have been spending a number of time taking a look at well being care, and it is extraordinarily harmful. It is extraordinarily harmful as a result of the legal guidelines of most marketplaces does not exist,” the Benchmark basic associate informed CNBC’s “Squawk Alley” on Friday. “There’s not a easy gravity. There’s forces in 5 completely different instructions. The folks which are consuming aren’t paying, it is loopy.”

Gurley took to Twitter earlier this yr to announce an funding in Solv, a cell appointment-booking well being app impressed by the actual property trade. (The second funding remained undisclosed within the interview.)

The perils of investing in disruptive health-care start-ups have been illustrated by Theranos, a blood-testing start-up that was accused of overstating the aptitude of its know-how. Nonetheless, know-how firms are pouring extra sources into well being care and wellness merchandise.

“I would prefer to consider in the event you take a look at the marketplaces which were constructed — like in Uber or Zillow — and also you take a look at this smartphone that you just’re carrying with you on a regular basis … there are answers that may be had,” Gurley stated. “I am optimistic that there is one thing there.”